Cedar Fair’s New Themes
CBS Corp. has sold its Paramount Parks theme park division for $1.24 billion in cash to theme-park operator Cedar Fair.
CBS took control of the parks from Viacom when it split itself into two publicly traded companies last year. CBS chief Les Moonves has stated that the company will focus on making money via distribution, not by owning unrelated businesses.
The parks Cedar Fair acquires are Kings Dominion near Richmond, Va.; Kings Island near Cincinnati; Carowinds near Charlotte, N.C.; Great America in Santa Clara, Calif.; and Toronto’s Wonderland. All five parks have active concert venues as part of their operations.
The deal is a gamble for Cedar Parks, according to the Wall Street Journal, because its all-cash offer is just below the company’s total market capitalization.
The purchase will make Cedar Fair the third-largest theme-park operator in North America, behind only Walt Disney and Six Flags in attendance, according to industry experts. The company’s stock rose 39 cents per share when the deal was announced. CBS shares rose 5 cents.
“The five properties we are acquiring fit very well with our existing parks, and there is very little overlap, Dick Kinzel, chairman and CEO of Cedar Fair said in a teleconference call May 22nd.
Kings Island is a longtime intrastate rival of the new owner’s Cedar Point, WSJ said.
